HB1362 EngrossedLRB097 05231 RLJ 45281 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Fire Protection District Act is amended by
5changing Section 11a as follows:
 
6    (70 ILCS 705/11a)  (from Ch. 127 1/2, par. 31a)
7    Sec. 11a. The Board of Trustees of any fire protection
8district organized hereunder may contract with any corporation
9organized to furnish fire protection service or with any
10association organized to furnish fire protection service or
11with any city, village, incorporated town, or organized fire
12protection district lying adjacent to such district for fire
13protection service to be furnished by such corporation or such
14association or such municipality or fire protection district
15for the property within such district or to be furnished by
16such district for the property within such municipality. The
17board of trustees may also contract for the installation,
18rental or use of fire hydrants within the fire protection
19district and for the furnishing of water to be used within such
20district for fire protection purposes, and for mutual aid from
21and to other fire protection districts, and for mutual aid from
22and to corporations and associations organized to furnish fire
23protection service and for mutual aid from and to

 

 

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1municipalities.
2    A municipality's fiscal obligations for fire protection
3services under a contract with a fire protection district
4entered into under this Section shall comply with the Local
5Government Prompt Payment Act. If a municipality fails to make
6a payment within 90 days, an interest penalty of 1% of any
7amount approved and unpaid shall be added for each 90 days or
8fraction thereof after the expiration of the 90 day period,
9until final payment is made. In the case of an action in court
10to collect delinquent fees from a contract for services between
11a municipality and a fire protection district, the losing party
12shall pay all reasonable legal fees incurred in the proceeding.
13    When the Board of Trustees of a Fire Protection District
14purchases fire protection services from an organization
15(specifically including without limitation a city, village,
16incorporated town, or adjacent fire protection district) that
17is required to be audited by "An Act in relation to audits of
18the accounts of certain governmental units and to repeal an Act
19therein named", approved May 10, 1967, or by The Illinois
20Municipal Auditing Law, the scope of the audit of the
21organization providing the fire protection services shall be
22expanded to require the licensed public accountant performing
23the audit to specifically report on compliance with the terms
24of the contract as it relates to financial matters, including
25but not limited to the amount charged to the purchasing Fire
26Protection District. To the extent possible, the financial

 

 

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1statements of the providing organization shall segregate
2accounts relating to fire protection service transactions and
3present them as a separate fund or as a separate department
4within a fund. A copy of the providing organization audit
5report shall be furnished to the purchasing Fire Protection
6District within 6 months after the close of the fiscal year of
7the organization providing the fire protection services.
8    When the Board of Trustees of a Fire Protection District
9purchases fire protection services from an organization
10(specifically including without limitation a not-for-profit
11corporation or a for-profit corporation or association) that is
12not required to be audited by "An Act in relation to audits of
13the accounts of certain governmental units and to repeal an Act
14therein named", approved May 10, 1967, or by The Illinois
15Municipal Auditing Law, the organization providing the fire
16protection services shall employ a person licensed to practice
17public accounting under the laws of this State to annually
18audit the providing organization's financial statements of all
19accounts, funds, and other moneys in the care, custody, or
20control of the providing organization. Such audit shall be
21conducted in accordance with Generally Accepted Auditing
22Standards and the scope of such audit shall be expanded to
23require the licensed public accountant performing the audit to
24specifically report on compliance with the terms of the
25contract as it relates to financial matters, including but not
26limited to the amount charged to the purchasing Fire Protection

 

 

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1District. To the extent possible, the financial statements of
2the providing organization shall segregate accounts relating
3to fire protection service transactions and present them as a
4separate fund or as a separate department within a fund. A copy
5of the providing organization audit report shall be furnished
6to the purchasing Fire Protection District within 6 months
7after the close of the fiscal year of the organization
8providing the fire protection services. Within 15 days after
9the first meeting of the board of directors or trustees of the
10organization providing the fire protection services that
11occurs after receiving the audit report, the organization
12providing the fire protection services shall publish excerpts
13from the audit report that relate to fire protection service
14operations in accordance with Section 7 of this Act. When fire
15protection services are rendered in more than one geographic
16area, publication or distribution should be made in each
17geographic area served.
18(Source: P.A. 86-216; 86-1023.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.